Look for a BIOS upgrade. The actual format of the CD may not be recognized by the BIOS as bootable, although it may work fine in other PCs.
Also test reading/writing other CDs in this particular drive.

Look for a BIOS upgrade. The actual format of the CD may not be recognized by the BIOS as bootable, although it may work fine in other PCs.

Also test reading/writing other CDs in this particular drive. Be sure the CD-ROM you selected (an internal drive) is the one you're wanting to use. If you have multiple CD-ROM drives (or external USB CD-ROM), then you'll need to select the CD-ROM drive option and pick the correct drive, or select USB Device as bootable and move it above the WD3000H hard drive.

This problem is completely unrelated to Windows 7 and is strictly a hardware/BIOS/CD format issue.

The CD drive in that PC may be broken, or maybe there is more than one optical drive and you are trying to boot from the one that doesn't have the CD inside. Or you are trying to boot from a DVD and your drive is only a CD...

A normal Windows 7 installation includes a memory test. When booting the PC wait until the BIOS has finished it's Post tests, then press the ESC or F9 key. you should then get a small boot menu where you can choose between Windows 7 and Windows memory Diagnostic. Choose that and the test should start. It should also be available when you boot into the normal boot menu of Windows 7 using F8 key and then select the Repair Windows option. Check the Link below for more details:

Another thing you can try if the CD drive is bad, get a UBCD and use the tool that comes with it to create a USB stick from that tool, then boot from the stick instead of the CD. That CD also includes memtest86+:

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